No Interest Loan Scheme (NILS)

For many people on low incomes, paying for essential goods and services is a struggle, and the effects of going without can be huge.

Without a fridge you can’t store fresh food, without a computer kids can be left behind at school, and if you can’t afford the pre-apprenticeship course, education can stall before it even begins.

The No Interest Loan Scheme offers people on low incomes safe, fair and affordable loans for fridges, washing machines and furniture, as well as education and medical expenses.

Loans up to $1,500 are available from 178 community organisation at 628 locations across Australia.

NILS also provides a safe and affordable alternative to the high cost finance options such as payday loans or ‘rent to buy’, products which promise ‘fast cash’ but often compound a person’s financial situation.

To be eligible for NILS you must have a healthcare or pension card, earn under $45,000, have lived in your current residence for three months, and have a willingness and capacity to repay the loan. There are no credit checks.

NILS is a leading example of Circular Community Credit. When a borrower makes a repayment, those funds then become available to someone else in the community. Clients recognise that repaying their loan means someone else is given the same opportunity they were – consequently, the repayment rate is constantly 95 to 97 per cent.

NILS reflects Good Shepherd Microfinance’s focus on improving opportunities for women and girls, with women representing 67 per cent of NILS clients. And our commitment to reconciliation and closing the gap is highlighted by the 22 per cent of clients that identify as Aboriginal or Torres Strait Islander people.

Research shows that four out of five NILS clients are moving away from crisis and hardship towards stability and resilience – achieving economic mobility. In addition, four out of five clients who have used payday lenders in the past have stopped using them since accessing NILS.

NILS is supported by the Australian Government as part of its five year, $33.3 million investment in microfinance, and our long standing corporate partner, the National Australia Bank.

18 December 2017

NILS helps Troy say goodbye to his dog, Dhama

For many people, a pet can be like a member of the family. For Troy and Alicia, their beloved dog Dhama was an important part of their lives for 17 years. So when it became apparent that she was unwell, they wanted to get her medical care quickly.

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Good Shepherd Microfinance acknowledges Aboriginal and Torres Strait Islander people as the traditional owners of the lands on which we operate and work, and pays respects to their history, their living culture and to Elders past and present.